The American company BTCS has announced the introduction of a unique market practice: shareholders will receive dividends not in fiat currency, but in the cryptocurrency Ethereum (ETH). The total amount of the payment will be $0.40 per share, of which $0.05 is the base amount, and an additional $0.35 is a bonus for certain shareholders.
This is reported by Business • Media
Conditions for Receiving Dividends and Digital Registry
Dividends are issued as a one-time payment, and to receive the additional bonus of $0.35 per share, shareholders must transfer their securities to a book entry system and hold them there for at least 120 days. Importantly, this additional payment does not apply to employees or management of the company.
The transition to a digital securities registry allows shareholders to more effectively control their assets and protect them from being lent out to short sellers, which are used for market speculation.
BTCS — A Pioneer in Cryptocurrency Dividend Payments
According to representatives of BTCS, the company has become the first publicly traded company to offer dividends in Ethereum. Previously, in 2022, BTCS had already paid dividends to its shareholders in Bitcoin, and the domain bividend.com was purchased back in 2015.
“We decided to pay the Bividend and the loyalty reward to thank our loyal shareholders and give them the opportunity to control and protect their investments. By transitioning to book entry, our shareholders gain tangible benefits and prevent their shares from being lent to short sellers, protecting them from market manipulation,” said BTCS CEO Charles Allen.
The CEO of BTCS also noted that short positions against the company are related to expectations of mass issuance and sale of shares. His primary goal is to ensure maximum profitability per share and protect the interests of shareholders.
The company has already announced plans to raise up to $2 billion to replenish reserves in crypto assets. Other companies operating under a similar model traditionally raise funds through the issuance of stocks and bonds.
In light of the announcement regarding the dividend payment, the price of BTCS shares on the Nasdaq exchange rose by 3% at the opening of trading on August 18.
BTCS Stock Price on Nasdaq. Source: TradingView.